Hometown Lenders and former affiliate prepare to settle $1 million lawsuit

One of Hometown Lenders’ former top-performing branches is about to settle $1 million in debt Litigation against defunct companies documents show last year.

The lawsuit, originally filed in August 2023 by father and son Anthony Perri Sr. and Anthony Perri Jr., who run the Moqueta, Ill., branch, alleges Hometown failed to repay “several hundred thousand dollars in approved fees” and their office building their complaint Added a chorus of other voices It is alleged that Hometown was negligent in the conduct of its business.

The lawsuit filed in U.S. District Court for the Northern District alleges that the imposter stopped reimbursing the two defendants for branch expenses in 2022, so the father and son paid more than $500,000 on behalf of Hometown to keep the branches open. Illinois area. The two left the company in July 2023.

An amended joint status report filed in Illinois federal court in late February provides clues as to how a settlement was reached between Perris and his hometown.

For example, the Alabama-based lender has agreed to transfer an office building to the plaintiffs, documents show. Last year, the father and son claimed Hometown and Hometown chief executive Billy Taylor wrongly retained ownership of their office building. They claimed the purchase of the building was funded entirely by the defendants.

Hometown also moved to have deferred damages transferred to the defendants. This would resolve Tony Sr.’s demand that the lender pay him more than $738,000 in deferred compensation. Resolution of the claims “will affect the pending motion to dismiss and may require no briefing,” an attorney for the Perrises wrote in the filing. In January, Hometown unsuccessfully tried to dismiss the case, It was claimed that the case failed to “raise a claim upon which relief could be granted”.

If the two sides cannot reach an agreement, the branch manager and Hometown will have to submit another joint status report on April 1, followed by a status hearing on April 5, documents show. Hometown CEO Billy Taylor and Perris did not immediately respond to requests for comment.

Another lawsuit filed by a former branch manager against Hometown Lenders seeking $50,000 in damages for failure to repay fees and commissions may also be close to settlement. Jason Wiggins, who filed the lawsuit in Lackawanna County, Pa., said Hometown recently offered to pay 30 percent of the balance owed on the settlement.

Even if the plant takes action to resolve the two lawsuits, there are other pending matters that complicate the company’s future.

Flagstar Bank files $21 million lawsuit A lawsuit was filed against Hometown in November. The lawsuit accuses the store and Billy Taylor of “wrongful conduct” in breach of contract on the warehouse line. A jury trial is scheduled to begin on February 2, 2025, in Michigan.

Additionally, late last year, several state housing regulators moved to revoke Hometown Lenders’ license, preventing the lender from doing business.In most cases, notices filed by regulators accuse the lender of failing to Pay your mortgage insurance premium In total, at least 300 FHA loans issued by Hometown have unpaid MIP, according to filings with regulators in Montana, Missouri, Maine and Alabama.

this IRS Federal tax lien notices worth nearly $1 million were also issued late last year, documents show.

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